Correlation Between Ningbo Tech and Hainan Haiqi
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Ningbo Tech and Hainan Haiqi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ningbo Tech with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Hainan Haiqi.
Diversification Opportunities for Ningbo Tech and Hainan Haiqi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Hainan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo and Ningbo Tech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ningbo Tech Bank Co are associated (or correlated) with Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Ningbo Tech and Hainan Haiqi
Assuming the 90 days trading horizon Ningbo Tech is expected to generate 2.22 times less return on investment than Hainan Haiqi. But when comparing it to its historical volatility, Ningbo Tech Bank Co is 1.19 times less risky than Hainan Haiqi. It trades about 0.09 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,931 in Hainan Haiqi Transportation on September 5, 2024 and sell it today you would earn a total of 241.00 from holding Hainan Haiqi Transportation or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Ningbo Tech Bank |
| Hainan Haiqi Transpo |
Ningbo Tech and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Hainan Haiqi
The main advantage of trading using opposite Ningbo Tech and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Hainan Haiqi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Ningbo Tech vs. Bomin Electronics Co | Ningbo Tech vs. Fuzhou Rockchip Electronics | Ningbo Tech vs. Guangzhou Zhujiang Brewery | Ningbo Tech vs. Leaguer Shenzhen MicroElectronics |
| Hainan Haiqi vs. Xiwang Foodstuffs Co | Hainan Haiqi vs. Ningbo Ligong Online | Hainan Haiqi vs. Pengxin International Mining | Hainan Haiqi vs. V V Food |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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